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Financial Statements Aer Lingus Group Plc – Annual Report 2010 83
27 Share premium, capital conversion reserve fund, capital redemption reserve fund and other reserves (continued)
2010 2009
€’000 €’000
Other reserves
Cash fl ow hedging reserve
At 1 January 11,705 (63,594)
Movement in the period 55,595 86,055
Deferred tax on movement in the period (6,949) (10,756)
At 31 December 60,351 11,705
Available-for-sale reserve
At 1 January 1,223 3,242
Movement in the period (795) (2,060)
Deferred tax on movement in year 82 41
At 31 December 510 1,223
Treasury shares
At 1 January (6,326) (9,137)
Purchase of shares -(4,159)
Cancellation of shares -6,970
At 31 December (6,326) (6,326)
Share based payment reserve
At 1 January 41 1,081
Movement in the period 882 (1,189)
Deferred tax on movement in the period (111) 149
At 31 December 812 41
Total other reserves 55,347 6,643
Long Term Incentive Plan (“LTIP”)
In July 2007, arising from the review of the Group’s compensation arrangement for executive directors and senior managers, the Company’s
shareholders approved the introduction of a LTIP in order to further align the interests of such executives and senior managers with those of
shareholders. The LTIP is a share based performance award scheme, which provides for the vesting of shares subject to the achievement of
minimum performance objectives measured over a three year period. The LTIP is tied to achievement of both a targeted Business Performance
Measure (selected by the Remuneration Committee) and to Total Shareholder Return (TSR). The TSR element is assessed against a peer group
of European airlines and the Companies of the ISEQ general index. The Business Performance Measure is set by the Remuneration Committee.
The maximum award under the LTIP is 150% of base salary. The maximum number of shares that can vest is set at 125% of the maximum
salary multiple. Awards under the LTIP can be made on an annual basis at the discretion of the Remuneration Committee.
Under the terms of the Group’s LTIP an early vesting of an award may occur at the discretion of the Remuneration Committee if there were
to be a change of control of the Company. 4,446,658 shares have been issued in respect of the LTIP and are registered in the name of ALG
Trustee Limited. Any voting rights attaching to the shares are exercised in the absolute discretion of the ALG Trustee Limited having regard
to the interests of the LTIP participants.